You’ve done the right thing. Taken the advice of your realtor and gotten a pre-approval from a lender. Now on to the buying process! However, are you really approved? Has your file gone through the underwriting process? Did you provide documents to verify your income and assets? If not, then you might not really be “pre-approved.” This is considered more of a pre-qualification process when those two things don’t happen. If so, then you shopping for a home could potentially end in disaster and you not purchasing that home of your dreams!
So what do you do to avoid potential disaster? Ask your lender the following questions:
- What documents do you need from me to get me pre-approved by your underwriter?
- When will my file go into underwriting?
- How long will it take to get an answer back from underwriting?
- How quickly will I be able to close after I get an accepted purchase agreement?
- When can I lock my rate and for how long?
- What could delay my approval or closing?
These questions are crucial to a successful purchase and closing of a home. If any of those questions cannot be answered easily by your lender of choice, then you may want to consider shopping around. Of course, other things are important also: loan type, rate and costs. However, none of that will matter if you are not able to close the loan.
In today’s market, most lenders are going to be close when it comes to costs and rates. Where you see higher costs and rates is typically lenders who market online and in the media. Someone has to pay for the costs of all that marketing. Who do you think they are going to pass it on to? In most cases it’s the consumer.
With that in mind, your ultimate goal is homeownership. That’s why who you choose to do business with is so important. You want a lender who has proven over and over again that they can get the job done. Also, they can get it done within the timeframe you need it done. Anyone can talk a good game, but can they perform. So don’t be afraid to ask the questions above. This will ensure a smooth process and the end result of you buying the home of your dreams.
IN 23815; KY MC81345
Louisville, KY 40216
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